Order for Commercial Scale FT

RNS Number : 2329Y

Oxford Catalysts Group PLC

20 December 2010

 



20^th December 2010

OXFORD CATALYSTS GROUP PLC

("Oxford Catalysts" or "the Group")

Order for Commercial Scale FT Reactor

Highlights

·     First order for commercial scale Fischer-Tropsch reactor and catalyst

·     Precursor to larger commercial orders

·     Group remains on track to secure additional order from SGCE upon completion of technical milestones

Oxford Catalysts Group PLC, the leading technology innovator for clean synthetic fuels, is pleased to announce that its partner SGC Energia, SGPS, S.A. ("SGCE") has placed an order for one of the Group's commercial scale Fischer-Tropsch ("FT") reactors and catalyst.

This represents the Group's first order for a full scale commercial reactor and catalyst (with a nameplate capacity of 25 barrels/day), and an important opportunity to validate manufacturing and supply-chain readiness ahead of larger commercial orders.

The order follows encouraging progress made by the Group during 2010, including the demonstration of its FT technology at Güssing, Austria, where a commercial scale biomass gasifier has been operational since 2002, supplying the entire energy needs of the local town. The Group plans to host potential customers, investors and financial analysts at its demonstration site in Güssing during the early part of 2011.

Oxford Catalysts remains on track to secure a larger commercial order from SGCE upon completion of the agreed technical milestones.

Roy Lipski, CEO of Oxford Catalysts Group said:

"We are pleased to have received our first order for a commercial scale reactor and catalyst from our partner SGCE. We enjoy a strong relationship with them and are appreciative of the continued confidence they are showing in our technology.

"This order provides a well timed opportunity to demonstrate our manufacturing readiness ahead of larger orders to come and full commercial roll out."

Vianney Vales, CEO, SGCE said:

"SGCE is pleased with the progress made this year and we're proceeding with our next steps to broadly commercialise the Group's FT technology."

- Ends -

For further information, please contact:

Roy Lipski, CEO, Oxford Catalysts	01235 841 700
Dan Harris, Peel Hunt (Nomad and Broker)	020 7418 8900
Billy Clegg / Alex Beagley, Financial Dynamics	020 7831 3113

Notes to Editors

Oxford Catalysts designs and develops technology for the production of clean synthetic fuels from both conventional fossil fuels and renewable sources such as bio-waste. The Group is primarily focused on the emerging market for distributed smaller scale production of synthetic fuels via Fischer-Tropsch ("FT") synthesis − a market that has the potential of producing as much as 25 million barrels of fuel a day.

The FT reaction is used when converting natural gas, coal or bio-mass into clean high-performance liquid synthetic fuels, processes known as GTL, CTL and BTL respectively. The Group is the recognised world leader in the design and development of high-activity catalysts and associated novel chemical reactors for the small scale production of synthetic fuels. (The Group's reactor technology − known as microchannel process technology − is marketed under the brand name of Velocys).

Oxford Catalysts Group PLC is listed on the AIM market of the London Stock Exchange (LSE: OCG). The Group has some 80 employees with facilities near Oxford, UK and Columbus, Ohio, USA.

www.oxfordcatalysts.com

www.velocys.com

About SGCE

SGC Energia, SGPS, S.A. ("SGCE") is the Group's preferred partner in the synthetic fuels market for applications involving solid feedstock such as biomass. The Group's FT demonstration at Güssing is being operated in conjunction with SGCE, who is responsible for the overall project management and demonstration plant activities, as well as the full costs.

SGCE is a Portuguese incorporated holding company that acts as the investment arm of João Pereira Coutinho, a well known Portuguese entrepreneur, in the renewable energy sector. Mr Coutinho, through his holdings, is involved in the production of conventional biofuels and the development of next generation bio and synthetic fuel technologies, as well as the supply of complex integrated solutions for the production of alternative energy. Mr Coutinho's activities in the sector include the operation of a 125,000 ton/yr biodiesel production facility, the establishing of over 30,000 ha of biomass energy crops in Africa, and, with partners, the development and demonstration of gasification, syngas cleanup, and syngas-to-liquids technologies. His staff participate in the engineering and operation of facilities, as well as the business aspects of projects. SGCE is owned by João Pereira Coutinho and his SGC Group.  SGC Group is active in 13 countries and has an annual turnover of over €1 billion.

SGCE has already secured the host site and initiated engineering activities for its first commercial synthetic fuels facility. Following successful demonstration at Güssing and completion of the technical milestones, SGCE intends to place its first commercial order with the Group.

 

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